For any technical trader looking to gain a deeper understanding of how to read forex charts in general, learning to read candlestick charts is a great starting point. In the 18th century, Candlestick charts were invented and created, as you may already know. The beginning reference to a candlestick pattern used in financial markets was invented in Sakata, Japan, where something similar to a modern candlestick was used by a rice merchant named Munehisa Homma to trade in the Ojima rice market in the Osaka area.

While bar charts and line charts were very common among Western traders, in the early 1990s, a Chartered Market Technician (CMT) named Steve Nison introduced Japanese Candlestick charts and additional trends to the Western financial markets. Due to its extremely detailed predictive characteristics, the popularity of Candlestick charts has risen among Western market analysts over the last few decades. Candlestick charts can play a crucial role in the financial markets’ better understanding of price action and order flow.

Reading Candlestick:

candlestick

You need to grasp the basic structure of a single candle on the candlestick chart. For a given time span, each Candlestick contributes; it may be 5min, 1H, Daily, Weekly, etc. A Candlestick represents four distinct values on a chart, regardless of the time period.

  • The opening price
  • The closing price
  • The highest price
  • The lowest price

When you read a candle, it will give you information on whether the session ended bullish or bearish, depending on the opening and closing prices. Bullish Candlestick when the closing price is greater than the opening price. By contrast, Bearish Candlestick when the closing price is lower than the opening price. And during the time period, the upper and lower shadows of the Candlestick represent the highest and lowest cost.

Do you want to become Success Supply and Demand Trader?

If you are a beginner trader and to become a good professional forex trader. The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

Please follow and like us:
close

Enjoy this blog? Please spread the word :)

error: Content is protected !!